Graham Corporation (GHM) has reported 44.43 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $1.84 million, or $0.19 a share in the quarter, compared with $1.27 million, or $0.13 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1.84 million, or $0.19 a share compared with $1.27 million or $0.13 a share, a year ago.
Revenue during the quarter surged 30.77 percent to $22.65 million from $17.32 million in the previous year period. Gross margin for the quarter expanded 747 basis points over the previous year period to 27.81 percent. Total expenses were 88.98 percent of quarterly revenues, down from 90.94 percent for the same period last year. This has led to an improvement of 196 basis points in operating margin to 11.02 percent.
Operating income for the quarter was $2.50 million, compared with $1.57 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.08 million compared with $2.18 million in the prior year period. At the same time, adjusted EBITDA margin improved 102 basis points in the quarter to 13.59 percent from 12.57 percent in the last year period.
James R. Lines, Graham’s president and chief executive officer, commented, "Our diversification strategies positively impacted the third quarter results, with approximately one-third of our sales coming from the U.S. Navy and nuclear power markets. Additionally, our gross margin in the quarter was significantly and favorably impacted by conversion of a non-typical order. Our diversification into markets not directly correlated to energy has certainly benefited recent performance and is expected to drive long-term growth."
Graham Corporation projects revenue to be in the range of $88 million to $92 million for financial year 2017.
Operating cash flow drops significantlyGraham Corporation has generated cash of $10.71 million from operating activities during the nine month period, down 51.71 percent or $11.46 million, when compared with the last year period. Cash flow from investing activities was $5.76 million for the nine month period as against cash outgo of $9.88 million in the last year period.
The company has spent $2.63 million cash to carry out financing activities during the nine month period as against cash outgo of $8.21 million in the last year period.
Cash and cash equivalents stood at $37.68 million as on Dec. 31, 2016, up 20.70 percent or $6.46 million from $31.22 million on Dec. 31, 2015.
Working capital decreases marginally
Graham Corporation has witnessed a decline in the working capital over the last year. It stood at $77.70 million as at Dec. 31, 2016, down 3.27 percent or $2.63 million from $80.33 million on Dec. 31, 2015. Current ratio was at 3.45 as on Dec. 31, 2016, down from 3.90 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 89 days for the quarter from 143 days for the last year period. Days sales outstanding went down to 121 days for the quarter compared with 147 days for the same period last year.
Days inventory outstanding has decreased to 26 days for the quarter compared with 75 days for the previous year period. At the same time, days payable outstanding went down to 58 days for the quarter from 78 for the same period last year.
Debt comes downGraham Corporation has recorded a decline in total debt over the last one year. It stood at $0.17 million as on Dec. 31, 2016, down 24.02 percent or $0.06 million from $0.23 million on Dec. 31, 2015. Total debt was 0.12 percent of total assets as on Dec. 31, 2016, compared with 0.15 percent on Dec. 31, 2015. Interest coverage ratio improved to 832.33 for the quarter from 392.50 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
